I enjoy the game of Cricket. Last year, I watched with amazement as the seemingly invincible Australian one-day side slumped into a run of five straight defeats by England and New Zealand that, earlier in the season seemed unimaginable.

If they eased back, it wasn’t by much but it made a crucial difference. Their preparation for the Cricket World Cup became much tougher and more rigorous than it might have been.

The same inexplicable slump can overtake businesses when they, too, are at the top of their game. They may ease off, give less attention to the detailed numbers of the business and the board may meet less often. Problems often surface first in the numbers.

Sales may stop growing because of competitive activity, profitability may be eroded by materials price increases or salespeople give more discount than usual – all will be revealed in the numbers.

Selling more of a product or service which is inherently profitable is a good thing, but what if it is no longer profitable and makes a small loss instead. The more units you sell before someone spots the problem, the more you will lose. Suddenly success is a bad thing.

Making sure you stay successful is about continuing to do the right things right. Every member of the board is responsible for maintaining the winning position. Board meetings must be held regularly – every month at least – and the financial position must be monitored continuously.

Whose job is it to ensure all of this happens? The CEO, of course (with the support of his non Executive Chairman if he has one). Snatching defeat from the jaws of victory is not part of his job description. Ensuring that everyone remains focused on further success clearly is.

Rating

By Brian Chernett  on   Oct 09,2008

Add a comment  |  Add a rating  |  Email to a friend

Keywords

success    cricket    preparation    growing business    product    CEO   

Comments